On the OMB loan application the section for the loan amount shows average monthly payroll X 2.5. However, the purpose of the loan states payroll, rent, Mortgage interesr, utilities.

On the OMB loan application the section for the loan amount shows average monthly payroll X 2.5. However, the purpose of the loan states payroll, rent, Mortgage interesr, utilities.


Posted on April 20, 2020

The calculation for the SBA 7(a) PPP loan states that once the borrower receives the loan proceeds, the borrower will not be responsible for the principal and interest on the loan amount if 75% of the proceeds are used on payroll costs, payments of interest on mortgage obligations incurred before February 15, 2020, rent payments on leases dated before February 15, 2020. And utility payments under service agreements dated before 15, 2020, for the eight-week period following the date of the loan. The average payroll calculation is used to determine the amount of the PPP loan.